Climate:
temperate continental; Mediterranean only on the southern Crimean coast; precipitation disproportionately distributed, highest in west and north, lesser in east and southeast; winters vary from cool along the Black Sea to cold farther inland; summers are warm across the greater part of the country, hot in the south

Terrain:
most of Ukraine consists of fertile plains (steppes) and plateaus, mountains being found only in the west (the Carpathians), and in the Crimean Peninsula in the extreme south

cabinet:
Cabinet of Ministers appointed by the president and approved by the Supreme Council

note:
there is also a National Security and Defense Council or NSDC originally created in 1992 as the National Security Council, but significantly revamped and strengthened under President KUCHMA; the NSDC staff is tasked with developing national security policy on domestic and international matters and advising the president; a Presidential Administration that helps draft presidential edicts and provides policy support to the president; and a Council of Regions that serves as an advisory body created by President KUCHMA in September 1994 that includes chairmen of the Kyyiv (Kiev) and Sevastopol' municipalities and chairmen of the Oblasti

elections:
president elected by popular vote for a five-year term; election last held 26 June and 10 July 1994 (next to be held NA October 1999); prime minister and deputy prime ministers appointed by the president and approved by the People's Council

Legislative branch:
unicameral Supreme Council or Verkhovna Rada (450 seats; under Ukraine's new election law, half of the Rada's seats are allocated on a proportional basis to those parties that gain 4% of the national electoral vote; the other 225 members are elected by popular vote in single-mandate constituencies; all serve four-year terms)

elections:
last held 29 March 1998 (next to be held NA 2002); note—repeat elections continuing to fill vacant seats

Political parties and leaders:
Communist Party of Ukraine [Petro SYMONENKO]; Hromad [Pavlo LAZARENKO]; Ukrainian Popular Movement or Rukh [Vyacheslav CHORNOVIL, chairman]; Socialist Party of Ukraine or SPU [Oleksandr MOROZ, chairman]; Peasant Party of Ukraine or SelPU [Serhiy DOVAN]; People's Democratic Party or NDPU [Anatoliy MATVIYENKO, chairman]; Reforms and Order Party [Viktor PYNZENYK]; United Social Democratic Party of Ukraine [Vasyl ONOPENKO]; Agrarian Party of Ukraine or APU [Kateryna VASHCHUK]; Liberal Party of Ukraine or LPU [Volodymyr SHCHERBAN]; Green Party of Ukraine or PZU [Vitaliy KONONOV, leader]; Progressive Socialist Party [Natalya VITRENKO]

note:
and numerous smaller parties

Political pressure groups and leaders:
New Ukraine (Nova Ukrayina); Congress of National Democratic Forces

Economy—overview:
After Russia, the Ukrainian republic was far and away the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied equipment and raw materials to industrial and mining sites in other regions of the former USSR. Ukraine depends on imports of energy, especially natural gas. Shortly after the implosion of the USSR in December 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output in 1992-98 fell to less than half the 1991 level. Loose monetary policies pushed inflation to hyperinflationary levels in late 1993. Since his election in July 1994, President KUCHMA has pushed economic reforms, maintained financial discipline, and tried to remove almost all remaining controls over prices and foreign trade. The onset of the financial crisis in Russia dashed Ukraine's hopes for its first year of economic growth in 1998 due to a sharp fall in export revenue and reduced domestic demand. Although administrative currency controls will be lifted in early 1999, they are likely to be reimposed when the hryvnia next comes under pressure. The currency is only likely to collapse further if Ukraine abandons tight monetary policies or threatens default. Despite increasing pressure from the IMF to accelerate reform, significant economic restructuring remains unlikely in 1999.

note:
in August 1998, Ukraine introduced currency controls in an attempt to fend off the impact of the Russian financial crisis; it created an exchange rate corridor for the hryvnia of 2.5-3.5 hryvnia per US$1

Fiscal year:
calendar year

Telephones:
12,531,277 (1998)

Telephone system:
Ukraine's phone systems are administered through the State Committee for Communications; Ukraine has a telecommunication development plan through 2005; Internet service is available in large cities

domestic:
local—Kiev has a digital loop connected to the national digital backbone; Kiev has several cellular phone companies providing service in the different standards; some companies offer intercity roaming and even limited international roaming; cellular phone service is offered in at least 100 cities nationwide

international:
foreign investment in the form of joint business ventures greatly improved the Ukrainian telephone system; Ukraine's two main fiber-optic lines are part of the Trans-Asia-Europe Fiber-Optic Line (TAE); these lines connect Ukraine to worldwide service through Belarus, Hungary, and Poland; Odesa is a landing point for the Italy-Turkey-Ukraine-Russia Undersea Fiber-Optic Cable (ITUR) giving Ukraine an additional fiber-optic link to worldwide service; Ukraine has Intelsat, Inmarsat, and Intersputnik earth stations

Disputes—international:
dispute with Romania over continental shelf of the Black Sea under which significant gas and oil deposits may exist; agreed in 1997 to two-year negotiating period, after which either party can refer dispute to the International Court of Justice (ICJ); has made no territorial claim in Antarctica (but has reserved the right to do so) and does not recognize the claims of any other nation

Illicit drugs:
limited cultivation of cannabis and opium poppy, mostly for CIS consumption; some synthetic drug production for export to West; limited government eradication program; used as transshipment point for opiates and other illicit drugs from Africa, Latin America, and Turkey, and to Europe and Russia; drug-related money laundering a minor, but growing, problem